November 2012 Business Magazine

EGGS ’N’ ISSUES

►►►Where Business Leaders Meet

WHAT LIES AHEAD? Don’t miss our annual EGGS ‘N’ ISSUES ECONOMIC FORECAST on Wednesday, December 12, with James Kurre, Ph.D., associate professor of economics at Penn State-Behrend and director of the Economic Research Institute of Erie (ERIE), for an in-depth look at the facts, figures, statistics and trends that can give us a clearer picture of what to expect in 2013 — as well as insights on the impact of Obamacare, the fiscal cliff, and possible expiration of the Bush tax cuts.

To register, click here or call 814/833-3200 or 800/815-2660.

Registration: 7:45 a.m. (8 a.m. presentation) Cost: $30 Members, $60 Nonmembers

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXV, NUMBER 11

Mechanical Contracting Firm Builds on Old-Fashioned Values, New Technology / Page 10

NOVEMBER 2012

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November 2012

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

Are you as fit as a fifth-grader?

How you can take wellness to the next level.

MICHAEL PARKINSON, MD

Association Board of Governors Chairman Dale Deist explains the importance of encouraging and educating your employees on voting this Election Day.

15 / Legal Brief

5 / Risking It All

9 / Health Matters

Why it’s important to know the arbitration rules in construction disputes before you sign a contract.

JOHN J. MEHLER

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3 / For What It’s Worth

In this new section, Great Lakes Automation Services, Inc. President Mark Fatica discusses the challenges and opportunities of founding the McKeanbased company 10 years ago.

10 / Wm. T. Spaeder Co.

Discover how the family owned William T. Spaeder Company in Erie, northwest Pennsylvania’s largest mechanical contracting firm, has expanded by embracing old-fashioned values and the attitude of being “best in business” by investing in its operation, training and technology.

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18 / On the Hill

On November 6, Erie County voters will decide who will fill the seats of two retiring legislators, State Senator Jane Earll and State Representative John Hornaman. The Association’s Government Affairs Department recently sat down to find out more about the open-seat candidates.

INSERT / Training Catalog

Learn about the Association’s upcoming professional development and computer training courses in our new catalog.

DEPARTMENTS > rd st - December 3 November 21 .net or at the locations listed on the card

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20 / Legal Q&A 25 / People Buzz

Read on the Go! For the most current Business Magazine updates or to register for a digital subscription, visit www.mbabizmag.com. Be sure to also fan us on Facebook and follow us on Twitter!

November 2012 > www.mbabizmag.com > 1

EDITORIAL > by Dale Deist

For What It’s Worth

VOL. X X V, NO. 11 NOVEMBER 2012

Encourage, Educate Your Employees on the Importance of Voting This Election Day Dale Deist is chairman of the Manufacturer & Business Board of Governors and founder of Hadley, Pennsylvania-based Deist Industries, a leader in the truck body manufacturing business since 1993.

I have been a businessman for 43 years and a member of the Manufacturer & Business Association (MBA) for 19. This year, I have the distinct honor of serving as the chairman of the Association’s Board of Governors.

As chairman — but more importantly, as an American — I want to take this opportunity to encourage you, my fellow members and entrepreneurs, to do two things of great importance.

The first is to vote in this month’s presidential election.

There’s little doubt that our great nation is at a crossroads — and I truly believe that this election boils down to two very different visions for America.

I know how I view each vision, and which one will create an environment of economic freedom and expansion — and I know that you do as well. The policies coming out of Washington, D.C. directly affect both our daily operations and our ability to compete.

That leads me to my second request: Please talk to your employees.

• Tell them how onerous regulations, tax uncertainties and more government control impact your ability to manage and grow your business.

• Tell them we need a vibrant private sector, not a bloated government.

• Tell them we need economic expansion, not increased government spending.

• Tell them we need more job creation, not more government programs.

• Tell them we need to unleash the genius of American technology backed by the massive capabilities of our work force — a winning combination that has made the United States the envy of the world.

Tell them these things because, in the end, we are all Americans, and we’re all a part of the same work force.

Tell them these things because you, like me, believe our country has unlimited potential and that our best years await us. And given the right economic environment — one that allows us to effectively compete in the world market — we can achieve that potential.

How do I know? Because it’s what has made the United States — the nation with the world’s largest and most powerful economy — the most exceptional nation on Earth.

Our story, America’s story, isn’t just something that I want to tell my grandchildren about — it’s a legacy I want to pass on.

Please vote on November 6.

For more detailed election information, please see this month’s On the Hill section on page 18.

Manufacturer & Business Association Board of Governors

Yvonne Atkinson-Mishrell Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto

Editor in Chief

Ralph Pontillo rpontillo@mbausa.org

Executive Editor

John Krahe jkrahe@mbausa.org

Managing Editor & Senior Writer

Communications Specialist

Contributing Writers

Karen Torres ktorres@mbausa.org Jessica McMathis jmcmathis@mbausa.org John J. Mehler Michael Parkinson

Feature Photography

Ron Stephens La Mirage Studio 814/835-1041

Advertising Sales

Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org

Design, Production Printing Concepts Inc. & Printing printcon@erie.net

ON THE COVER: Owners of the William T. Spaeder Company — front row, from left: Mary Kay Reber; Terry and Jay Spaeder; and back row, from left: Tony, Tim (retired), Steve and Dave Spaeder; and Greg Senger — have invested approximately $2 million to renovate and expand their offices on East 18th Street in Erie. The company, founded in 1914, has grown dramatically over the years to become one of Pennsylvania’s largest and most comprehensive mechanical contracting firms.

For full story, see page 10.

Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests.

– Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2012 by the Manufacturer & Business Association.

All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited.

Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork.

The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

November 2012 > www.mbabizmag.com > 3

From left to right: Scott Gezymalla, Andrew Lincoln and Jeremy Lincoln

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EDITORIAL > by Ralph Pontillo

EDITORIAL > by Karen Torres

Great Lakes Automation Services, Inc. Owner Shares Startup Challenges, Success

Risking It All

The Business Magazine is proud to introduce our new “Risking It All” section, which highlights the entrepreneurs who took risks and made sacrifices to build their businesses in our region. This month, we sat down with Mark Fatica, president of Great Lakes Automation Services, Inc., to talk about the challenges and opportunities of starting the McKean-based company 10 years ago.

Ten years ago, Mark Fatica was working for someone else. His former employer, Assembly Machines Inc., had been in business in the Erie area since the 1970s, but in 1996 was bought by a multimillion-dollar company that had been acquiring automation and packaging businesses across the country.

From left: Great Lakes Automation Services, Inc. co-owners Bryan Brooks, Mark Fatica and Ken Fisher.

As the economy turned south in the early 2000s, many of the facilities were forced to shutter and it looked like the Erie operations would be moved out of town. Fatica, a former vice president of sales and marketing, and colleague Ken Fisher, an operations manager, had worked there for more than 25 years; another colleague Bryan Brooks, who was a service expert, had worked there for about 10.

“We said to ourselves, ’Why don’t we look at starting our own thing?’ We had such a good rapport with customers and a lot of relationships,” Fatica says. “So we decided to start our own business to do service and parts of automated assembly equipment.”

“We said to ourselves, ’Why don’t we look at starting our own thing?’ “

In February 2002, Fatica and his new partners put in their notices and founded Great Lakes Automation Services. It was the three of them, a business plan, and the $20,000 they each kicked in for starting working capital. They worked out of their homes, pretty much round the clock.

According to Fatica, the realities of becoming a business owner were harsh. Cash, noncompete litigation, and a subsequent settlement — that wouldn’t allow them to solicit certain customers for two years — made it even more daunting. Still, they pushed ahead.

The company moved to a small office and manufacturing space in Millcreek Township and grew little by little every year. Ironically, in 2004, their former employer asked them if they wanted to buy back the business, and they did — for pennies on the dollar.

The business employs 50 workers across three divisions.

Even so, Great Lakes wasn’t very diversified — and closely tied to the automotive market — so any swing in the market hit the business hard.

That’s when Fisher, a disabled U.S. military veteran, went looking for business with prime contractors of the government and secured classification as a service-disabled, veteran-owned, small business. He spent about a year introducing Great Lakes to different companies at various trade shows. In 2007, they got “the call” from a company in Rochester, New York that needed to outsource its packaging and kitting.

“With most businesses, in the first five to seven years, you don’t make a lot of money, if any at all, and we didn’t,” explains Fatica. “The amount of business they placed with us and the cash flow it introduced allowed us to catch up, pay off all our debts and start with a clean sheet of paper.”

Great Lakes, which now occupies a 34,000-square-foot facility in McKean, has grown exponentially since then, providing automated assembly and test equipment; packaging and kitting; and precision machining. In 2009, Great Lakes purchased Clifton Machining in Lake City, bringing the total operation to 50 employees across three divisions. The company also started Great Lakes Auto Nation to offer muscle car restoration services and Eagle Auto Services to handle collision work and towing — creating potential for even more growth.

Great Lakes Automation Services, Inc. is headquartered at 8835 Walmer Drive in McKean, Pennsylvania.

To this day, Fatica is adamant about his decision to go into business for himself. “There is good and bad with everything, but at the end of the day, controlling your destiny and just the satisfaction of taking something when you risked it all, and it worked out for you, it is very rewarding; it is all worth it.”

For more information about Great Lakes Automation Services, Inc., visit www.glasi.us.

November 2012 > www.mbabizmag.com > 5

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Business Buzz ERIEZ BRINGS INTERNATIONAL BUSINESS CONFERENCE TO ERIE Eriez, a world authority in advanced technology for magnetic, vibratory, inspection and flotation applications headquartered in Millcreek Township, recently hosted its International Business Conference at the Erie Bayfront Sheraton Hotel and Bayfront Convention Center. The event, themed “A World of Opportunities,” attracted about 150 attendees from Eriez field sales offices and affiliate plants around the world.

“In this, our 70th anniversary year, we have more of a global focus than ever before,” stated Shuttleworth in a prepared statement. “We are experiencing tremendous growth both around the world and right here at home. For Eriez, there truly is a world of opportunities.”

The last Eriez International Business and Marketing Conference was held in 2008.

Highlights of the Eriez conference included speeches from Shuttleworth as well as two keynote speakers: Charles Cohon, president and CEO of the Manufacturers’ Agents National Association, and Chester Elton, author of The Orange Revolution.

For more information, visit www.eriez.com.

COMPOSIFLEX INTRODUCES NEW PROTOTYPE PROGRAM Composiflex, a global supplier of highly engineered composite products, has introduced the RAPIFLEX prototype program, which enables delivery of real

DEPARTMENTS > Contact: Jessica McMathis

GE UNVEILS THE FIRST TIER 4 HEAVY HAUL LOCOMOTIVE GE Transportation recently unveiled the prototype for its next Evolution Series Locomotive that will decrease key emissions by more than 70 percent and save railroad customers more than $1.5 billion in infrastructure and operational costs.

GE expects that the locomotive will be the first in the industry to meet the U.S. Environmental Protection Agency’s (EPA) stringent “Tier 4" emission standards, set to take The prototype for GE Transportation’s next Evolution effect in 2015.

Series Locomotive.

The new engine technology is the result of a six-year, $400-million investment, followed by a two-year, $200-million investment to hone the research, design and engineering to meet Tier 4 standards.

The company plans to build its Tier 4 Evolution Series Locomotives at one or both of its U.S. locomotive manufacturing sites in Erie and Fort Worth, Texas, and its Tier 4 compliant diesel engines at its manufacturing plant in Grove City, Pennsylvania.

For more information, visit www.ge.com. advanced composite prototypes with drastically improved lead times.

Through the program, improvements in turn-around-time have been made by utilizing innovative tooling and manufacturing processes along with dedicated resources.

The company introduced the program to design engineers and other attendees at the recent AUVSI (Association for Unmanned Vehicle Systems Inter- national) tradeshow.

ANGELO’S SALON DEVELOPMENT GROUP GOES MOBILE Angelo’s Salon Development Group Inc., a full-service distributor of professional hair care products to professional independent salons, recently equipped all of the company’s distributor sales consultants with the Apple iPad3.

The company believes the mobile technology will help its consultants deliver more information more efficiently to customers in the northwest Pennsylvania and Ohio markets, as well as enhance education support, improve response times, quicken order processing, and better deliver educational and promotional documents.

For more information, visit www.angelosgroup.com.

From left: Angela Engro Fatica, owner and president; Doug Martin, Fran DiSanti, and Carole Amross; Chris Fatica, owner and vice president of Sales; and Rebecca Schuff.

Composiflex is an innovator in the design and manufacture of advanced highperformance composites. Specializing in custom designs, the Erie-based company serves aerospace, military, ballistic protection, medical, industrial, and other markets.

For more information, visit www.composiflex.com.

BUSINESS RECORDS MANAGEMENT ACQUIRES THE PAPER EXCHANGE Business Records Management LLC (BRM), a leader in information management, has acquired the records and information storage business, including document destruction, and the related assets of The Paper Exchange. This acquisition enhances BRM’s position as a regional leader in the information management industry, and follows the April 2012 acquisition of Underground Archives.

Founded in 1986, BRM operates facilities in Pittsburgh, Erie and Johnstown and provides information management services to organizations throughout western Pennsylvania, Ohio, West Virginia, and parts of Maryland and New York.

For more information, visit www.businessrecords.com.

November 2012 > www.mbabizmag.com > 7

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EDITORIAL > By Michael Parkinson MD, MPH

Health Matters Are You as Fit as a Fifth-Grader?

Many of you have seen the popular TV show, “Are You Smarter Than a Fifth Grader?” And, no doubt, you came away with an appreciation for things fifth-graders know that adults do not — or have forgotten.

It’s just as likely that many adults would be surprised to learn the answer to this question: “Are You as Fit as a Fifth-Grader?” Chances are you don’t know and it’s unlikely that you could easily find out from either your doctor or your corporate wellness program. ’Risk’ vs. ’Fitness’ My fifth-grade son recently brought home his “Fitness Gram,” which recorded how he scored in a number of physical tests designed to measure fitness. What struck me was how detailed the assessment was, especially in contrast to its equivalent in the corporate or “adult” world.

Employers have been measuring and promoting workplace wellness primarily through the use of a health risk assessment, which measures personal health behaviors and selfreported height and weight, or body mass index (BMI). Many employers add biometric screenings, which include blood pressure and lipid or blood fat levels as well.

Typically, individuals whose scores or lab values indicate low risk are considered most healthy. But the absence of risk does not equal “health.” And, clearly, the absence of risk does not equal “fitness.” Simply put, in the corporate world at least, the bar has been set too low on

the measurement and definition of “wellness.”

Fitness tests for my fifth-grader include: • Aerobic capacity. This is known as “VO2 Max,” and is widely considered the test that best reflects the overall cardiorespiratory (heart and lung) physical fitness of an individual.

VO2 Max also has been shown to be the best single predictor of “all cause mortality” — how long we’ll live. Aerobic testing is almost never part of corporate wellness tests for adults.

• Assessment of muscle strength, endurance and flexibility. These are considered the core components of total fitness and are rarely part of an adult fitness test.

• BMI. This test is common in health risk assessments as well.

BMI is based on a formula that takes into account your height and weight in determining whether you have a healthy percentage of body fat.

Why Fitness Matters on the Job Muscle strength and flexibility are important in the workplace.

Musculoskeletal injuries, such as strains and sprains, are due often to obesity, lack of core body strength, and fitness. Musculoskeletal injuries are a leading cause of lost workdays, as well as medical and disability costs.

Back injuries, slips, and stretching mishaps are common work-related incidents that could be avoided with improved core body strength.

Generally speaking, fifth-graders are more fit than adults because they are more active. In order to improve fitness, people need to participate in moderate aerobic activity for 30 minutes a day, five days a week. It does not matter if the 30 minutes is all-at-once or split into three 10-minute segments. What’s important is to try to get moving!

Trying to become as fit as a fifthgrader is within your reach — not immediately, but over time. Any company — or, individual, for that matter — that wants to take wellness to “the next level” should start measuring fitness the way fifthgraders do. Comprehensive fitness assessment can be incorporated into onsite wellness screening.

To learn more about UPMC Health Plan’s wellness programs, visit www.upmchealthplan.com.

Michael Parkinson MD, MPH is the senior director, Health and Productivity, for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and which offer a full range of insurance programs and products.

November 2012 > www.mbabizmag.com > 9

Clockwise from top left: The William T. Spaeder Company was founded in 1914 on East 25th Street in Erie and today is owned by the third generation of the Spaeder family. Founder William T. Spaeder (shown far right) had a strong work ethic that he instilled in his family, including Dave Spaeder and Kathleen Peden (bottom right), who still work at the business today. They were two of the original 13 members of the Spaeder family, which included children William C., James, Thomas, Marie (Senger), Magdeline, Kathleen (Peden), David, Paul, Jerome, Mark, Mary Agnes (Crolli), and parents William T. and Josephine Julia.

Mechanical Contracting Firm Builds on Old-Fashioned Values, New Technology The William T. Spaeder Company is one of the most recognizable names in mechanical contracting in northwest Pennsylvania, and one of its oldest.

In 1914, namesake William T. Spaeder founded the company while working out of his shop on East 25th Street in Erie. It was there in the back of his home that Spaeder, with his natural curiosity and talent for tinkering, created a fascinating assortment of devices, including his patented “wonder liquid water level” and “reflecto target,” a tool used for surveying.

“He had a very entrepreneurial spirit and a great curiosity,” explains granddaughter Mary Kay Reber, the company’s current CFO. “He was not formally educated — he only went to school to the eighth grade — but he was self-educated and self-motivated.”

Ultimately, Spaeder’s greatest accomplishment wasn’t an invention, per se, but the pride and values he and his wife, Julia, instilled in their family and their plumbing business. Nine of the couple’s 11 children went to work at the contracting firm — two of whom still work there today.

“I always tell people that if they want to get a sense of the Spaeder Company, they have to look at its origins,” states Reber. “If you think of a large German Catholic family, then you have the understanding that they are going to be very frugal, hard-working, nose-to-the-grindstone type 10 < www.mbabizmag.com < November 2012

of people, raised on the belief that although you may not always agree, at the end of the day, you all have to pull in the same direction or you won’t succeed.”

Now on its third and fourth generation, the William T. Spaeder Company has certainly achieved success, a credit to the seven owners who have embraced their family values and the attitude of being “best in business” by investing in their operation, training and technology.

“Sometimes with family businesses you have a lot of outside shareholders who don’t really understand the financial needs and the market challenges that the company is facing,” Reber explains. “Our whole concept is that we protect the company first, and do what is the best interest of the company, and hopefully that is what is in the best interest of the family too.”

Extensive Services

The William T. Spaeder Company is truly a family owned business that embodies old-fashioned values while staying progressive within its industry.

Earlier this fall, the company completed a $2-million renovation and expansion at its headquarters on East 18th Street. The company has been at the location since 1966, with its only other major addition dating back to 1992.

“In recent years,” notes Reber, “we outgrew the space and realized we needed a more professional image, one which matched the vision we have for our company.”

What has emerged is one of the region’s largest mechanical contractors with comprehensive services that include plumbing; heating, ventilation and air-conditioning; process piping systems; fire protection; and preventative maintenance. The company serves a broad range of customers in the residential, commercial, and industrial markets. Their diverse customer base includes colleges and universities, hospitals and manufacturing plants, and municipal water and wastewater treatment facilities.

According to Spaeder’s grandson, President Terry Spaeder, much of the company’s early industrial work came from manufacturers such as the former Hammermill/International Paper, General Electric, and Lake Erie Biofuels, Pennsylvania’s first large scale biodiesel facility.

“The job that really triggered growth was the biofuels plant,” notes Spaeder. “We finished that in 2007 and, from that time on, it seemed to spark the company. It showed the owners what we could do and what our potential was and things really took off from there.”

Spaeder’s resume also includes extensive work for large-scale projects at Gannon University, Edinboro University of Pennsylvania, as well as United Refining, and the Erie County Courthouse. The company’s plumbing, process piping and fire protection projects range anywhere from $50,000 to upwards of $14 million.

Most recently, Spaeder has been closely involved with the improvements at the Erie Water Works facility and the installation of a new filtration or “membrane” system at the Wasielewski Water Treatment Plant. One of the company’s most highly anticipated projects is the $47-million expansion and renovation of Erie Insurance Arena, where the firm serves as the prime plumbing contractor and heating subcontractor at the convention center and sports complex.

Continuous Investments

According to Terry Spaeder, the company has been able to control costs and increase efficiency on these projects through its facility and technological investments.

The firm’s 21,000-square-foot fabrication shop, in which Spaeder does all its own pipe work and welding, is currently undergoing a 15,000-squarefoot addition, at a cost of approximately $600,000 with a $200,000 equipment upgrade.

“We have invested in our fabrication shop and we think what separates us from the competition is pre-fabrication,” explains Spaeder.

“What normally takes two guys in the field to do, we do with one man in our shop.”

Complementing this fab shop expansion is the Spaeder Company’s investment in Building Information Modeling (BIM) software. John Marsh, virtual design and construction division manager at Spaeder, says the technology combined with high-tech scanners yields detailed virtual images more quickly than traditional surveying methods — and more accurately. A drawing of a pipe can, in effect, be turned into a realistic object, which can easily be turned into an actual part for fabrication.

“For a contractor,” says Marsh, “the purpose of the model is to get the real world into the fab shop so that we can use the shop more effectively.”

According to the company, Spaeder is the first mechanical contractor, outside New York City, to use phase-based laser scanners with strategically placed sensors for building projects. The laser scanners, largely used for forensic investigations, provide even more intricate scans than the firm’s single-point laser scanners, with up to 28 million points per rotation, or billions of points for each project.

On the Wasielewski project, for example, Marsh says the company was able to compare their model to the real-world construction, and was >

Farther from home, the company has done work for major customers such as Pfizer in Chillicothe, Ohio, and Marcellus shale-related piping work for a client in Mount Jewett, Pennsylvania.

“We emphasize quality and when you do this your reputation becomes synonymous with quality,” says Spaeder. “We see that over and over again.”

The Spaeder Company’s cutting-edge fabrication shop, located at its East 18th Street headquarters in Erie, is currently undergoing a 15,000-square-foot addition.

About: William T. Spaeder is one of northwest Pennsylvania’s oldest and largest mechanical contracting firms and a member of the Mechanical Contractors Association of America.

Founded: 1914 in Erie, Pennsylvania by William T. Spaeder Headquarters: 1602 East 18th Street in Erie Services: Provides a variety of plumbing and heating, process piping systems, fire protection and technical support services for industrial, commercial and residential customers.

Market Locations: Primarily Erie, Warren and Crawford counties; industrial work extends as far south as Pittsburgh, central Pennsylvania and central Ohio.

Employees: Approximately 185 Community Involvement: The firm places a strong emphasis on giving back to the community through participation on various boards, such as the Autism Society and Jefferson Educational Society, and fundraisers for the Erie Housing Authority, as well as the Barber National Institute and L’Arche in honor of their aunt, Magdeline Spaeder, who was born mentally challenged.

Phone: 814/456-7014 Fax: 814/459-1178 Email: info@wmtspaeder.com Website: www.wmtspaeder.com November 2012 > www.mbabizmag.com > 11

The Spaeder Company has invested heavily in new technology, including Building Information Modeling (BIM) software for projects, such as the Erie Water Works Wasielewski Water Treatment Plant (shown here), and high-tech laser scanners (shown below) for virtual design and construction. The mechanical contracting firm is the first company in northwest Pennsylvania to utilize the technology.

able to assist the general contractor with wall dimensions. “Even though we were only the piping contractor, with our technology we actually ended up laying out the new wall locations,” he states, “because we had it all in a digital environment and we could see more accurately how everything worked together.”

Marsh, who represented Spaeder at a recent industry trade show in Las Vegas, says the technology has taken the contracting industry by storm. “If you spend time with a company like us, which is advanced in the technology of preconstruction, you can save time during actual construction and really eliminate the change orders that plague larger projects,” he says.

Looking Forward

In addition to being a leader in technology, the Spaeder Company is far ahead of the curve when it comes to employee education and training.

“When the economy turns down, the natural reaction is pull in your horns and to be very conservative,” notes Terry Spaeder. “We are fortunate that we are able to invest in our people through education and training. Slow economic times provide the opportunity for training, so when the market does recover, we are ready to hit the ground running.”

The Spaeder Company offers employees tuition reimbursement of up to 75 percent, for those wishing to pursue a college education to further their knowledge and skill sets at the firm. Even the company’s president is leading by example by pursuing a master’s degree in building construction through an online program at Purdue University.

In fact, future generations of the Spaeder family must now meet an educational requirement before they can become owners.

“Our current project managers and division managers are very skilled and it doesn’t make sense for us to take someone with limited potential and sit them at the table,” says Spaeder. “That is why we have raised our standards and challenge ourselves.”

The Spaeder Company has high standards for its work force as well. The firm regularly hosts ongoing training seminars through the Mechanical Contractors Association of America, as well as performance training and productivity classes to keep their employees current within their industry.

“When we ask our foremen to participate in training, they eagerly sign up. They want to compete with other foremen and they want to stay current,” says Spaeder.

“We partner with our employees,” adds Reber. “We won’t do well if we don’t have employees who really invest themselves in their work.”

12 < www.mbabizmag.com < November 2012

Remembering Where They Started

The Spaeder Company has come a long way since 1914 but the values and vision are still as relevant today as they were when William T. Spaeder founded the company out of his modest home.

Terry Spaeder believes his grandfather would be thrilled by the progress and achievements the firm has made over the years. “My own father is amazed by our growth. He was born in the ’30s. He experienced some tough economic times, and he is very excited about where we are going.

I believe my grandfather would just be equally amazed and very proud.”

Reber says the current owners are indebted to their grandfather and the second generation of Spaeders for seeing to it that the business flourished, and allowing them to invest in the company for the next generation.

“We have a very rich history and very seasoned and dedicated owners and employees who are working hard to ensure the future success of this company, and we are here for the long term,” adds Reber. “We were born and raised in Erie, Pennsylvania and we will always reinvest in our community because this is our home and we believe in reinvesting in what works.”

With strong family and community ties — and a commitment to investing in the future — William T. Spaeder is truly a progressive company that hasn’t forgotten its past.

For more information about the William T. Spaeder Company, visit www.wmtspaeder.com.

T R A I N I N G

S C H E D U L E

Training That Develops Effective Leaders “We have been using the Manufacturer & Business Association for our training needs for over 15 years and we have never been disappointed. We are very fortunate to have a local resource available to us that is ready to help us whenever our business demands change. We will continue to use the Association to help our company grow and stay competitive.”

— Heather Evans HR Manager AirBorn, Inc.

ans, AirBorn, Inc. and Heather Ev e en re G te Pe te r Nelson, gradua From left: Jennife

As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

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Professional Development

Professional Development

Certified Supervisory Skills Series Course I Course III (St. Marys) Course IV Course IV (Meadville) Price: $295 Members, $415 Nonmembers

12/6 and 12/13 12/18 and 12/19 12/4 and 12/11 12/4 and 12/11

Leadership for Team Leaders Course III Course V (Warren) Price: $175 Members, $310 Nonmembers

12/20 12/15

Computer Access 2007/2010 Level I Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III Word 2007/2010 Level I Price: $175 Members, $310 Nonmembers

12/6 12/4 12/11 12/18 12/12

Social Success: Six Steps to Conquering Social Media (Half Day) 12/5 Price: $99 Members, $155 Nonmembers QuickBooks 2012 Level I Price: $195 Members, $310 Nonmembers Access 2007/2010 Level II (Two Days) Price: $310 Members, $460 Nonmembers

12/14 12/13 and 12/20

e-Learning: Excel Basics (10 a.m. - 11 a.m.) e-Learning: Excel PivotTables (10 a.m. - 11 a.m.) e-Learning: PowerPoint Advanced (2 p.m. - 3 p.m.) e-Learning: Word Basics (2 p.m. - 3 p.m.) e-Learning: Word Mail Merge (10 a.m. - 11 a.m.) e-Learning: Word Intermediate (2 p.m. - 3 p.m.)

Price: $75 Members, $150 Nonmembers

12/10 12/19 12/17 12/10 12/17 12/19

“Investing in management education for both new and seasoned leaders has not only influenced corporate success, but has contributed to many successful career paths. The MBA-USA programs are high quality, accessible and affordable. That translates into great value.”

— Gary M. Maras, Chief Executive Officer Medicor Associates Inc.

“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my everyday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant Intellectual Property Services

Certified Supervisory Skills Series Course I (Warren) Course II Course III Course IV Course IV (St. Marys) Course V Course V (Meadville) Price: $295 Members, $415 Nonmembers

1/24 and 1/31 1/3 and 1/10 1/31 and 2/7 1/9 and 1/16 1/22 and 1/23 1/8 and 1/15 1/8 and 1/15

Leadership for Team Leaders Course IV Price: $175 Members, $310 Nonmembers

1/17

Food Safety Certification Price: $145 Members, $250 Nonmembers

1/21

HR Essential Certification Series: Interviewing & Hiring Price: $70 Members, $140 Nonmembers

1/17

Computer Access 2007/2010 Level I Access 2007/2010 Level III Excel 2007/2010 Level I Excel 2007/2010 Level II Word 2007/2010 Level II Word 2007/2010 Level III Price: $175 Members, $310 Nonmembers

1/15 1/8 1/17 1/24 1/10 1/22

e-Learning: Excel Advanced (10 a.m. - 11 a.m.) e-Learning: Excel Basics (10 a.m. - 11 a.m.) e-Learning: Excel Charts (2 p.m. - 3 p.m.) e-Learning: Excel Intermediate (10 a.m. - 11 a.m.)

1/23 1/9 1/16 1/16 e-Learning: Office 2010 New Features (10 a.m. - 11 a.m.)1/21 e-Learning: PowerPoint Basics (10 a.m. - 11 a.m.)

1/14 e-Learning: PowerPoint Intermediate (2 p.m. - 3 p.m.) 1/23 e-Learning: Publisher (2 p.m. - 3 p.m.)

1/14 e-Learning: Windows 7 Basics (2 p.m. - 3 p.m.)

1/21 e-Learning: Word Advanced (2 p.m. - 3 p.m.)

1/9 Price: $75 Members, $150 Nonmembers

“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certification Series. Knowing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fast-paced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager Moody and Associates, Inc.

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2/14 and 2/21 2/28 and 3/7 2/6 and 2/13 2/12 and 2/13

Leadership for Team Leaders Course V Price: $175 Members, $310 Nonmembers

2/7

Food Safety Certification Price: $145 Members, $250 Nonmembers

2/18

Lean Operations: Champion Training (Three-Day Workshop) 2/11, 3/11 and 4/19 Price: $950 Member, $1,350 Nonmember (includes lunch) Six Sigma-Green Belt: Certification & Implementation (Three-Day Workshop) 2/14, 3/14 and 3/8 Price: $950 Member, $1,350 Nonmember (includes lunch) HR Essential Certification Series: Compensation & Benefits Price: $70 Members, $140 Nonmembers

2/21

Computer Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III Price: $175 Members, $310 Nonmembers

2/5 2/12 2/19

QuickBooks 2012 Level I Price: $195 Members, $310 Nonmembers

2/15

Access 2007/2010 Level II (Two Days) Price: $310 Members, $460 Nonmembers

2/7 and 2/14

e-Learning: Excel Basics (10 a.m. - 11 a.m.) e-Learning: Excel PivotTables (2 p.m. - 3 p.m.) e-Learning: PowerPoint Advanced (2 p.m. - 3 p.m. ) e-Learning: Word Basics (10 a.m. - 11 a.m.) e-Learning: Word Mail Merge (2 p.m. - 3 p.m.) e-Learning: Word Intermediate (10 a.m. - 11 a.m.)

Price: $75 Members, $150 Nonmembers

2/6 2/6 2/13 2/13 2/20 2/20

“Environmental Reclamation Services takes pride in the continued education of our employees. In seeking out a program that clearly defines the expectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager Environmental Reclamation Services

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Training

Professional Development Certified Supervisory Skills Series Course II (Warren) Course IV Course V Course V (St. Marys) Price: $295 Members, $415 Nonmembers

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Regional Locations All courses are held at the MBA Conference Center in Erie, unless otherwise noted.

Erie:

MBA Conference Center 2171 West 38th Street

Butler:

Fairfield Inn Route 8 at Route 422

Corry:

Corry Higher Ed Council 221 North Center Street

DuBois:

Best Western Plus Inn & Conference Center 82 N. Park Place

Franklin:

Franklin Industrial & Commercial Development Authority 191 Howard Street

Grove City:

Hampton Inn 4 Holiday Blvd., Mercer

Kittanning:

Armstrong Educational Trust 81 Glade Drive

Meadville:

Holiday Inn Express Route 322

St. Marys:

Community Education Council 4 Erie Avenue, Suite 200

Warren:

Warren/Forest Higher Education Council Curwen Building, 2nd Floor 185 Hospital Drive

Williamsport:

MBA Central Division Office 2401 Reach Road

Onsite Training Get more flexibility and convenience with our onsite training options.

Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses Whether you need a half day or full day of professional development or computer training — let our expert trainers come to you!

Course Registration Contact Ann Miaczynski at 814/833-3200, 800/815-2660 or amiaczynski@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

ONSITE TRAINING PROFESSIONAL DEVELOPMENT Supervisory Skills Leadership for Team Leaders Customer Service One-Day Food Safety Certification And much more!

COMPUTER TRAINING Word Levels I, II, III Excel Levels I, II, III Access Levels I, II, III Outlook And much more!

How you need it.

When you need it.

Where you need it.

Considered a leader in professional development and computer training for more than 20 years, the Manufacturer & Business Association offers you the ease and flexibility of onsite training for groups of six or more employees.

Onsite Convenience: Nothing beats the convenience of training conducted at your facility. Let our expert instructors bring the training you need, when you need it, where you need it.

Customized Programs: From full-day to half-day programs, all of our courses can be tailored to address your organization’s specific needs.

Focused Interaction: Facilitated by our training specialists, your employees’ experience is further enhanced through group discussion on key topic areas specific to your company’s work environment.

Call Ann Miaczynski for more information about onsite training programs at 800/815-2660 or 814/833-3200, or visit www.mbausa.org.

Are you putting all your eggs in one basket . ?

Depending on one customer or industry segment for your company’s success is risky business.

You know us as the resource for manufacturers who want to go lean with their processes.

But, the NW Industrial Resource Center also offers our clients “Best in Class” Business Growth Services such as: • • •

New market identification New product & process development Strategic planning

• • •

Sales generation Succession planning Export services

Call today at 814-898-6893. We’ll show you how to target, attract, and win new customers.

We manufacture success.

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For more information, contact: Erin Heath, 814-590-1219 • Cameron, Clairion, Clearfield, Elk, Jefferson, McKean & Potter Counties Susan Hileman, 814-572-2077 • Crawford, Forest, Mercer & Venango Counties Gerry Schneggenberger, 814-898-6891 • Erie & Warren Counties

TIME OF THANKS. If you are our client, we thank you.

We thank you for recognizing quality service and quality work from a team of specialists. At Schaffner, Knight, Minnaugh & Company, P.C., we thank you for letting us help you do what you do best â&#x20AC;&#x201D; successfully manage your facility and run your business.

Even though November is the known for being the season of giving, you know that we give our best all year long.

If you want to experience superior service 365 days a year, call us.

You will be thankful.

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Offices: Erie, PA

1001 State Street, Suite 1300 Erie, Pennsylvania 16501 814-454-1997

Jamestown, NY

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351 Aviation Way Reynoldsville, PA 15851 814-375-2700

The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clientsâ&#x20AC;&#x2122; business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

Legal Brief

EDITORIAL > By John J. Mehler

Gain a Better Understanding of the Arbitration Rules in Construction Disputes Problems frequently arise on construction projects leading to disputes among the owner, the architect, the general contractor, the subcontractor and/or the suppliers.

When the disputes escalate to the point where they cannot be settled, one or more of the parties may bring a claim. Frequently, construction contracts provide a dispute resolution procedure that uses the American Arbitration Associationâ&#x20AC;&#x2122;s (AAA) Construction Industry Arbitration Rules. If you have been involved in a construction project, you may have signed a contract that incorporates these rules and, as with any provision in a contract, it is important to know how these rules apply.

Procedural Tracks The AAA Construction Industry Arbitration Rules may govern the entire arbitration process. The rules provide four different procedural tracks: 1) regular; 2) fast; 3) document submission; and, 4) the complex construction dispute. Other than the document submission track, the amount in dispute determines which track applies.

The fast track applies to cases involving claims between two parties, and the disputed amount is less than $75,000. The regular track covers any claims between $75,000 and $1 million. The large complex construction track dispute rules govern claims of more than $1 million. The document submission track, however, provides for no hearing and a decision by a single arbitrator based only on the submission of relevant documents

and written argument. If the parties all agree, this track can be used for claims involving any dollar amount.

The fast track procedures are aimed at minimizing the time and cost involved in the case. The entire hearing process is completed in 45 days by expediting the arbitrator appointment process, limiting the amount of discovery, and providing for only a one-day hearing. Fast track rules require that an award decision will be made within 14 days after the hearingâ&#x20AC;&#x2122;s completion. If your dispute fits the requirements for a fast track proceeding, this approach can provide a relatively quick and inexpensive alternative to court-based litigation.

Large, Complex Construction Dispute Procedures At the other end of the spectrum are the large, complex construction dispute procedures that look very much like a traditional court case.

These rules provide for the selection of a panel of arbitrators, provide them with broad authority to order and control discovery, and require a mandatory preliminary hearing with the arbitrators prior to conducting the actual fact hearing. The arbitrators usually make a written award decision, similar to a court opinion.

Regardless of the arbitration procedures that apply, there are a couple of key differences from standard court-based litigation worth noting. First is the limitation on the right to appeal the decision of the arbitrators. Absent a showing of fraud on the part of

the arbitrators, there is usually no right of appeal. The arbitration decision is final. Second, the parties typically share the arbitration cost.

This includes a fee to the AAA to administer the arbitration, as well as the cost of the arbitrators. These costs can easily reach thousands of dollars, especially where a lengthy hearing is held.

Before you sign a contract with an arbitration clause calling for AAA arbitration under the Construction Industry Arbitration Rules, it is important to understand the applicable rules, which are available on the American Arbitration Associationâ&#x20AC;&#x2122;s website, www.adr.org.

An attorney or other professionals familiar with the AAA arbitration process can help you determine if it will be appropriate for your construction contract situation, or to assist you in cases to which the rules apply.

Jack Mehler is a partner with the law firm of MacDonald, Illig, Jones & Britton LLP, and the solicitor to the Builders Association of Northwest Pennsylvania.

He can be reached at 814/870-7757 or email jmehler@mijb.com.

November 2012 > www.mbabizmag.com > 15

HR Connection WORKPLACE SAFETY SHOWS STEADY IMPROVEMENT The American workplace is getting a lot safer, with far fewer work-related deaths than there were just a decade ago, according to a new report by CNN.com.

In 2011, 4,609 people died as a result of a work-related accident, according to the Bureau of Labor Statistics’ annual report on workplace fatalities.

That’s down 1.7 percent from 2010, when 4,690 people died on the job and 22 percent from 2001 when 5,915 were killed in work- related accidents.

Research shows that workplace fatalities have been falling nearly every year since 1994, when they totaled 6,632.

According to the report, the decline is largely due to a commitment by employers, industry organizations and workers to improve safety in the

workplace. Additionally, rules and regulations put in place by the Occupational Safety and Health Administration have become more clear and concise.

NEW SURVEY: MOST EMPLOYERS FALL SHORT WHEN MANAGING TALENT As an unsteady economy forces businesses to do more with less, only one-third of organizations manage their talent effectively, according to a survey by the Korn/Ferry Institute, the research arm of executive search firm Korn/Ferry International.

According to the survey, threequarters of the respondents felt their organizations lacked the appropriate levels of budget, staff, and skills necessary to manage their talent effectively. Further, only 29 percent of respondents said their organizations have the technology to integrate their talent data.

“It’s clear that organizations have more work to do in the way they manage talent, said Ilene Gochman, leader of integrated talent management at Korn/Ferry. “Companies must invest in resources to support talent management and to differentiate talent based on well-defined measures of potential and performance. The good news, though, is that most organizations already have the foundational basics in place.”

According to the survey, 60 percent of organizations polled have created and implemented clear talent strategies, while fully 71 percent have core competency models in place that articulate and illustrate the skills and traits most valued by these organizations. Despite such widespread adoption, only 53 percent say that their companies apply their core competency models across the talent-management spectrum in hiring, evaluating, developing and promoting employees.

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Call 800-854-4099 or e-mail service@davevic.com 16 < www.mbabizmag.com < November 2012

DEPARTMENTS > Contact: Stacey Bruce

Zero-Tolerance Policy is Best Protection Against Workplace Violence Unsafe working conditions are easy to spot. Missing guards, frayed cords and failing to wear protective equipment are easily seen and corrected.

However, spotting a troubled, potentially violent employee can be more difficult to spot — with tragic consequences.

Workplace violence is violence or the threat of violence against workers.

It can occur at or outside the workplace and can range from threats and verbal abuse to physical assaults and homicide, one of the leading causes of job-related deaths. However it manifests itself, workplace violence is a growing concern for employers and employees nationwide.

Approximately 2 million American workers are victims of workplace violence each year. Workplace violence can strike anywhere, and no one is MBAAds3_Layout 1 5/3/12 3:10 PM Page 3 immune. Some workers, however, are

at increased risk. Among them are workers who exchange money with the public; deliver passengers, goods, or services; or work alone or in small groups, during late night or early morning hours, in high-crime areas, or in community settings and homes where they have extensive contact with the public.

The best protection employers can offer is to establish a zero-tolerance policy toward workplace violence against or by their employees. The employer should establish a workplace violence prevention program or incorporate the information into an existing accident prevention program, employee handbook, or manual of standard operating procedures. It is critical to ensure that all employees know the policy and understand that all claims of workplace violence will be investigated and remedied promptly.

Our employees have an expectation that we will create and maintain a safe working environment. Let’s all commit today to meet those expectations.

With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area.

For more information, visit www.mbausa.org.

Dan Monaghan is the director of Training at the Manufacturer & Business Association.

Austin Every day E.E.Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”.

It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you.

Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com

November 2012 > www.mbabizmag.com > 17

OntheHill Pennsylvania State Senate and State House On November 6, Erie County voters will decide who will fill the seats of two retiring legislators, State Senator Jane Earll (R) and State Representative John Hornaman (D). The Association’s Government Affairs Department recently sat down to learn more about the open-seat candidates (below) and their responses to two critical questions.

State Senate Open Seat

State House Open Seat

Sean Wiley – D

Janet Anderson – R

Director of Administration

Economic Development

Occupation

www.votewiley.com

www.voteforjanet.com

Website

What do you see as the greatest challenge to the business community?

We need to create opportunities to keep sustainable jobs here and to help attract and retain more business in our area. In order for those jobs to be sustainable, we must invest in a skilled and prospective work force to meet the current and future employment needs of business and industry.

The greatest challenge to the business community is the pressure of a global economy. Global competition is real for all types of businesses and local economies.

Pennsylvania makes it difficult for businesses to be successful by over taxing and regulating beyond other states and countries.

Competition is fierce and every additional perceived or real cost reduces Pennsylvania’s opportunity to increase employment.

What do you see as the greatest challenge to the business community?

What will you do to solve the problem?

Public policies, programs, incentives, and investments by themselves do not necessarily create economic success at the community level. It is the private component of the partnership that creates jobs. I believe that the public sector should provide support to private enterprise in order to ensure the economic success of the region. It is the public side of the public/private partnership that cultivates a business policy environment that enables these companies to grow, prosper and create wealth in the Erie region. We can address these important issues with a “Made in PA” tax incentive and with retraining programs to provide the necessary work force.

I will work with both parties to fight for a business friendly climate. This includes changes to business taxes (elimination of the Capital Stock and Franchise Tax, reduction of the Corporate Net Income Tax, Removing the Cap on the Net Operating Loss); reducing the impact of regulations on employers; and making sure education funding is available to provide a work force for now and the future.

What will you do to solve the problem?

Occupation Website

18 < www.mbabizmag.com < November 2012

DEPARTMENTS > Contact: Lori Joint

Statewide Offices Jason Owen – R Need More Information on Candidates and the Election?

Download the MBA 2012 Voter Toolkit for free at the MBA Government Affairs website, www.mba-ga.org. Read it, pass it along to your friends, family and employees, and help educate yourself and your contacts!

In Pennsylvania, there are also three statewide offices, officially called “row offices,” which will be on the ballot. Candidates for Attorney General, Auditor General and Treasurer are vying for your votes. The offices of Attorney General and Auditor General are open seats.

There will be an open race for Pennsylvania’s “top cop” in 2012. Incumbent Pennsylvania Attorney General Linda Kelly agreed not to seek election to the office when she was nominated to fill the unexpired term of Governor Tom Corbett. No Democrat has won the post since the Constitution was amended to allow for the popular election of an Attorney General, beginning in 1980. The candidates are:

Kathleen Granahan Kane – D Assistant District Attorney www.kathleengkane.com Ryan Bizzarro – D

Jason Owen – R

Business Development

Attorney

www.pastaterep.com

www.votejasonowen.com

After meeting with multiple business owners throughout the county and listening to their major concerns, I’ve noticed two challenges the business community faces — the lack of a skilled and educated work force that matches the operating needs of their organization, and the difficult climate for existing businesses to grow and for entrepreneurs to start new industries in our area.

Pennsylvania’s noncompetitive business policies and cumbersome tax structure.

As state representative, I’d support legislation that empowers Pennsylvania students, connects entrepreneurs and small businesses to proper resources, and develops partnerships to strengthen our work force. We must restore funding to education, invest in vocational training and create more incentives — like the recent LORD Corporation decision — to retain existing businesses and to spur economic growth. Pennsylvania students need tools to prepare for a competitive global marketplace, and businesses need a climate that encourages growth and attracts new industries to invest in our communities.

I will lead by example to refine and streamline our state government process to make us more competitive to grow our businesses in Pennsylvania. We need strong, independent leadership to fight for policies that will support our businesses. I will fight to:

David Freed – R District Attorney www.davidfreedforag.com

Incumbent Auditor General Jack Wagner is term-limited and so this will be an open-seat race. The position of Auditor General has been an elected post since 1850. Seven of the past eight Auditor Generals, including the incumbent, have been Democrats. The candidates are:

Eugene DePasquale – D Pennsylvania State Legislator www.eugene4pa.com

John Maher – R Legislator www.cpaforpa.com

The Pennsylvania Treasurer is responsible for tracking the Commonwealth’s $120-billion public funds, and administering the 529 College Savings Program and the Bureau of Unclaimed Property. The Treasurer, which first became a public office in 1704, serves a maximum of two four-year terms. The candidates are:

• Continue the phase-out of the state Capital Stock and Franchise Tax • Reduce the Corporate Net Income Tax • Remove the cap on carry forward of net operating losses Robert McCord – D Incumbent www.robmccord.com

Diana Irey Vaughan – R Washington County Commissioner www.friendswithdiana.com November 2012 > www.mbabizmag.com > 19

Legal Q&A AS THE HOLIDAY SEASON FAST APPROACHES, MANY EMPLOYERS ARE CONSIDERING OPTIONS FOR END OF THE YEAR GIFTS/BONUSES FOR EMPLOYEES. HERE ARE A FEW QUESTIONS AND ANSWERS ADDRESSING THIS ISSUE. I WANT TO GIVE MY EMPLOYEES GIFT CARDS FOR AN END OF THE YEAR GIFT. ARE THERE ANY TAX CONSEQUENCES FOR THEM OR ME? Publication 15-B, the Internal Revenue Services (IRS) specifically states: “Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare.”

Unfortunately, this means that the IRS

looks at gift cards the same as cash and they are taxable for you and your employee. Therefore, gift cards, no matter the value, must be considered part of the employees’ income and will be subject to payroll taxes. Some employers work with their payroll specialists to make sure employees receive the full benefit of holiday bonuses or gifts by making sure the check is for the bonus, plus any taxes.

I WANT TO GIVE MY EMPLOYEES A HAM FOR THE HOLIDAYS. WILL THIS BE A PROBLEM WITH THE IRS? You are in luck. The IRS considers gifts such as fruit baskets, hams or turkeys and small electronics as “deminimis” gifts and, as such, are not subject to taxes. Whether an item or service is de minimis depends on all the facts and circumstances. In

B.S.I. is proud to congratulate the Wm. T. Spaeder Co., Inc.

addition, if a benefit is too large to be considered de minimis, the entire value of the benefit is taxable to the employee, not just the excess over a designated de minimis amount. The IRS has ruled previously in a particular case that items with a value exceeding $100 could not be considered de minimis, even under unusual circumstances.

HAVE A LEGAL QUESTION? GET ANSWERS! We know that urgent employment issues can arise at a moment’s notice. As a Manufacturer & Business Association member, you can call our certified HR specialists and labor and employment law attorneys any time for counsel on a broad range of workplace-related issues, at no charge. Call our Legal Hotline today at 800/815-2660 or 814/833-3200.

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Call JKS at 814-796-6365 or visit us online at www.jksfinishesinc.com

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20 < www.mbabizmag.com < November 2012

DEPARTMENTS > Contact: Tammy Lamary

2012-2013 Supreme Court Session Likely to Have Direct Impact on Employers This past summer the Supreme Court concluded its 2011-2012 term with one of the most important decisions issued in its history on the health-care reform law.

While some employers are still trying to wrap their heads around the health-care decision upholding the Affordable Care Act, employers also should pay attention to the Court’s docket this fall. The 2012-2013 term that began just weeks ago will include a handful of labor and employment cases that are likely to have a direct impact on employers.

Here is a short description of some of these important cases: Title VII (Vance v. Ball State University) — This case will determine who is a “supervisor” under Title VII. The Court will decide whether an employer can be held vicariously liable

for workplace harassment by supervisors who oversee other employees’ daily work but lack the authority to hire and fire demote, promote, transfer or discipline them.

Class Certification (Comcast Corp. v. Behrend) — This case will decide whether a class action can be certified without determining whether the plaintiffs have introduced sufficient evidence to show that the litigation may result in damages to the entire class of plaintiffs.

FLSA (Genesis Healthcare Corp. v.

Symczyk) — This case will decide whether a Fair Labor Standards Act (FLSA) class action becomes moot when the employer offers to satisfy all of the claims of the lead plaintiff.

While we await the Court’s decision on these issues and other employment-related cases, employers

should continue putting policies into practice to help prevent workplace harassment.

The Manufacturer & Business Association will continue to keep you posted on any developments and changes to the law that may occur.

The Association’s Legal Services Division can assist you with a variety of employment law issues. Please contact me at 814/833-3200, 800/815-2660 or tlamary@mbausa.org for more information.

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

November 2012 > www.mbabizmag.com > 21

2012 Corporate Gift Giving & Event Planning Guide (814) 835-3553

3557 W.26th St. ~ Erie, PA 16506

Now Serving Wine & Beer!

Business Hours Monday - Thursday 11:00 am - 9:00 pm Friday - Saturday 11:00 am - 9:30 pm

~ Steak ~ Seafood ~ Pasta ~ Bistro Sandwiches ~ Fresh Salads Classic American Cuisine with a touch of Mediterranean Flair Check out our full menu at:

www.Bistro26Erie.com

BUY ONE GET ONE HALF OFF! November 21st - December 3rd Purchase Online at UltimateGiftCard.net or at the locations listed on the card Buy one get one half off promotion begins November 21, 2012, and ends December 3, 2012. Buy one card and receive a second card of equal or lesser value at half price of its total value. Minimum purchase of $25 to qualify for the buy one get one half off offer. Visit UltimateGiftCard.net for details.

22 < www.mbabizmag.com < November 2012

Make a list. Check it twice.

Forget the naughty, invite the nice.

Whether you’re planning an intimate celebration with business associates or a fun ’n festive gathering with family, friends or co-workers – we’ll make sure the holiday spirit is on full display.

So get ready to party, you’ve come to the right place!

Visit www.mbausa.org or call Norm Zymm at 814/833-3200 or 800/815-2660 to book your holiday gathering today.

November 2012 > www.mbabizmag.com > 23

Having access to credit can give a lift to your bottom line.

With Cash Flow Options from PNC and our PNC Advantage for Manufacturers, we can help you take advantage of everyday untapped opportunities. Like helping ensure access to credit. So you can be prepared for market shifts, inventory requirements, equipment purchases or innovation. For uncovering opportunities to help improve your cash flow, visit pnc.com/cfo, stop by a branch or call 1-877-535-6314.

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All loans are subject to credit approval and may require automatic payment deduction from a PNC Bank Business Checking account. Origination and/or other fees may apply. PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Cash Flow Options is a service mark of The PNC Financial Services Group, Inc. © 2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. member fdic

People Buzz AG AEGIS COMPANY, INC. HIRES SAFETY PROGRAM MANAGER AG Aegis Company, Inc., an environmental, health and safety consulting firm in Corry, Pennsylvania recently hired Deano Trott as its new safety program manager.

Trott, who is a retired Senior Master Sergeant — Independent Medic of 22 years from the U.S. Air Force, will be responsible for managing and growing Aegis Company’s safety business.

Before joining Aegis, Trott was the regional safety manager for H.T. Lyons, where he was responsible for construction worker safety.

He also holds a bachelor’s degree in safety and environmental management from Slippery Rock University of Pennsylvania.

CRN MAGAZINE RECOGNIZES ERIE BUSINESSWOMAN For the second year in a row, Erie-based entrepreneur Beth Burnside has made CRN Magazine’s annual “Women of the Channel” list, the most prominent and prestigious roster of women in the technology channel.

Owner and CEO of CMIT Solutions of Erie, Burnside opened her business in 2007 and provides IT management, computer support, and IT consulting to small and medium-size businesses in the Erie area. Burnside conducts workshops for various professional and trade groups in the Erie area on a variety of tech-related topics and is an advocate for women in business through her active participation in the ATHENA PowerLink program.

CRN, a trade publication for the technology industry, published the 208-member list in its July issue. The

magazine has published the “Women of the Channel” list for the last nine years to honor female IT executives’ success in generating revenue for their businesses and building a good reputation for the channel. The 2012 list also included tech luminaries from companies such as Microsoft, Intel and Google.

DECISION ASSOCIATES ADDS ORGANIZATIONAL DEVELOPMENT CONSULTANT Mike Towner has joined Decision Associates to lead the organizational development practice of the local consulting firm.

Towner has 26 years of leadership, management and operational experience and has held a variety of positions in the electronics, machining and plastics industries. He will utilize his diverse experience in operational and executive management to help clients develop and execute strategic plans, pursue organizational development geared toward performance improvement and conduct executive searches.

After graduating from Indiana University in Bloomington with a bachelor’s degree in marketing and a concentration in psychology, Towner served seven years as an officer in the U.S. Navy. He was most recently president of AccuSpec Electronics in Erie.

HILL, BARTH & KING LLC RE-ELECTS CEO Hill, Barth & King LLC (HbK), Certified Public Accountants and Business Consultants announced that Christopher M. Allegretti, CPA has been re-elected as the firm’s managing principal and chief executive officer. Allegretti serves as chairman of HBKS Wealth

DEPARTMENTS > Contact: Karen Torres

Advisors and also has been re-elected to another four-year term on HbK’s Executive Committee.

Allegretti received his bachelor degree in accounting from Edinboro University. He is a member of many professional associations, including the American Institute of Certified Public Accountants, where he also received a Certificate of Achievement in Personal Financial Planning, the Pennsylvania Institute of Certified Public Accountants, and the Ohio Society of Certified Public Accountants.

ATHENA INTERNATIONAL ELECTS BOARD MEMBERS, OFFICERS ATHENA International™, an organization that honors, supports and develops women leaders, has announced the election of new officers and board members, including two from Erie, Pennsylvania: Elected to a one-year term on the executive committee is: Colleen Moore Mezler, president and CEO, Moore Research Services, Inc. In addition, Linda Stevenson, SVP/Women’s Business Development Program, PNC Banking, will serve on the ATHENA Board.

MALIN BERGQUIST’S ELLIOTT RECEIVES CPA DESIGNATION Christopher Elliott, a staff accountant with Malin, Bergquist and Company, LLP, one of Erie’s largest certified public accounting firms, has obtained his designation as a certified public accountant (CPA). He is a QuickBooks Pro Advisor and a member of Malin Bergquist’s closely held business advisors group. Elliott holds a bachelor of science in accounting from Penn State Erie, The Behrend College.

November 2012 > www.mbabizmag.com > 25

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…the smart new solution for small and mid-sized businesses in Erie, Crawford, Warren, and Mercer counties — from UPMC Health Plan.

For information, call: UPMC Health Plan – Erie Office 109 Boston Store Place Erie, PA 16501 814-833-6633